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b. Section 11.5, Interpretation, shall be deleted in its entirety and replaced with the following: <br />"11.5 JiIR [SDICT[ON -VENUE <br />This Agreement has been executed and delivered in the State of California and the <br />validity, interpretation, performance, and enforcement of any of the clauses of this Agreement <br />shall be determined and governed by the laws of the State of California. Both parties further <br />agree that Orange County, California, shall be the venue for any action or proceeding that may <br />be brought or arise out of, in connection with or by reason of this Agreement " <br />2. COMPENSATION <br />a. City agrees to pay, and Vendor agrees to accept as total payment for its services, the <br />rates and charges identiSed in Exhibit A. The total sum to be expended under this Agreement <br />shall not exceed $45,000 during the term of this Agreement. <br />b. Unless otherwise agreed in writing by the parties, payment by City shall be made <br />within thirty (30) days following receipt of proper invoice evidencing work performed, subject to <br />City accounting procedures. Payment need not be made for work which fails to meet the <br />standards of performance set forth in the Recitals which may reasonably be expected by City. <br />3. TERM <br />This Agreement shall commence on the date first written above and terminate on May 30, <br />2008, unless terminated earlier. The term of this Agreement may be extended for an additional <br />one-year term upon a writing executed by the Executive Director of Public Works and the City <br />Attorney. <br />4. INDEPENDENT CONTRACTOR <br />Vendor shall, during the entire term of this Agreement, be construed to be an independent <br />contractor and not an employee of the City. This Agreement is not intended nor shall it be <br />construed to create an employer-employee relationship, a joint venture relationship, or to allow <br />the City to exercise discretion or control over the professional manner in which Vendor performs <br />the services which are the subject matter of this Agreement; however, the services to be provided <br />by Vendor shall be provided in a manner consistent with all applicable standards and regulations <br />governing such services. Vendor shall pay all salaries and wages, employer s social security taxes, <br />unemployment insurance and similar taxes relating to employees and shall be responsible for all <br />applicable withholding taxes. <br />5. INSURANCE <br />Prior to undertaking performance of work under this Agreement, Vendor shall maintain <br />and shall require its subcontractors, if any, to obtain and maintain insurance as described below: <br />a. Commercial General Liability Insurance. Vendor shall maintain commercial general liability <br />insurance and shall include, but not be limited to protection against claims arising from bodily and personal <br />injury, including death resulting therefrom and damage to property, resulting from any act or occurrence <br />arising out of Vendor's negligence in the performance of this Agreement, including, without limitation, acts <br />involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage <br />2 <br />